Does the CSL share price fall finally make it a no-brainer buy?

Could shares in the healthcare giant really offer 22% upside right now?

Key points
  • The CSL share price has come off recent highs, falling 9% from its February peak to trade at $286.18 today
  • Meanwhile, the company appears to be gearing up to grow following a rough few years amid the pandemic
  • And plenty of brokers are also bullish, with one tipping the stock to reach $350 a share

CSL Limited (ASX: CSL) is the market's most expensive company on a share price basis, with each of its stocks setting an investor back $286.18 at the time of writing.

But it's recently come off a peak. The CSL share price has dumped around 9% since posting a 15-month high in February, topping out at $314.28.

The company operates its Behring medicines business, its Vifor nephrology leg, its Seqirus influenza vaccines operation, and its plasma collection business.

And many brokers are tipping those businesses to grow amid rising demand, a productive research and development pipeline, and increasing plasma yields.

Indeed, one expert is forecasting the CSL share price to gain 22%. Though, not all are so bullish.

Could that mean the S&P/ASX 200 Index (ASX: XJO) biotechnology giant is finally a no-brainer buy? Let's take a closer look.

A scientist examining test results.

Image source: Getty Images

CSL share price hit hard by COVID-19

The CSL share price surged around 100% between 2018 and 2020. However, such growth slowed amid the onset of the pandemic.

Efforts to reduce the spread of COVID-19 saw the company's plasma collections tumble. Meanwhile, it embarked on an ultimately unsuccessful mission to create a vaccine for the virus.

It also underwent the $16 billion acquisition of Vifor, for which it completed a $6.3 billion capital raise in 2021.

Looking forward

Fortunately, things look to have bounced back for the ASX 200 company.

It posted record plasma collection last half, helping it achieve a US$1.6 billion profit. That's expected to come in at between US$2.7 billion and US$2.8 billion for the full year.

It's forecasting growth in plasma collections while its Hemgenix gene therapy product is expected to be launched in the United States shortly.

Finally, the integration of Vifor is said to be well advanced with delivery of synergies on schedule.

 Is CSL a buy right now?

 So, is CSL a no-brainer buy at its current share price?

Top broker Citi appears to think so. It has a buy rating and a $350 price target on the stock, my Fool colleague James reports. Citi tips the company's growth to be born from rising demand and a productive pipeline.

Meanwhile, Macquarie is expecting big things from the company's plasma collection yields, slapping CSL stock with an add rating and a $340 price target.

Rounding out the bulls is Morgans. It tips the stock to rise to $337.92 and has branded it with an add rating.

But not everyone is quite so hopeful.

Goldman Sachs is neutral on CSL shares, predicting that they'll rise to $314. The broker remains unsure of the company's path to margin recovery and is unconvinced of its valuation.

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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